Kinder Morgan Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Theresa Chen - Barclays Services Corp - Analyst : Good afternoon. I wanted to go back to your growth outlook and specifically the over $10 billion opportunity set in unsanctioned projects under development up, I think, from the previous $7 billion to $11 billion range. What has driven the seemingly improved outlook over the past few months -- how quickly do you think you can commercialize these growth opportunities? And where are you seeing the most interest for expansion projects amongst your customers.

Question: Theresa Chen - Barclays Services Corp - Analyst : And on that last point, Kim, following this week's announcement of your open season for Western Gateway, can you talk about your projects positioning relative to ONEOK's competing Sunbelt project? And assuming that Western Gateway solicits sufficient commercial interest during the open season, can you talk about potential gating factors, regulatory or other rides that Kinder and [Phillips] may need to address before the project can be sanctioned?

Question: Jeremy Tonet - JPMorgan Chase & Co - Analyst : Hi, good afternoon.

Question: Jeremy Tonet - JPMorgan Chase & Co - Analyst : Just want to follow up on some of the comments you had said there with KMI seeing an opportunity step more robust at any time in the company's future. And just want to, I guess, see if we could expand upon that in any way? And just wondering how you think about the landscape given Kinder's competitive positioning, it seems like it's a competitive market out there. And any thoughts that you could provide around that? And I guess, what could be the cadence of how this capital could fall into plan at a high level over time?

Question: Jeremy Tonet - JPMorgan Chase & Co - Analyst : Got it. That's very helpful. And then just a smaller question for me as it relates to the guide. It just seems like the language changed a little bit with how much going to exceed the guidance by out regular in the 2Q versus 3Q? And it seems like it's a little bit less at this point. Just wondering what other, I guess, changes in the backdrop you see versus the 2Q.

Question: Jeremy Tonet - JPMorgan Chase & Co - Analyst : Got it. I'll leave it there. Thank you.

Question: Julien Dumoulin Smith - Jefferies - Analyst : Hey, good afternoon team. Thank you, guys, very much for the time. I appreciate the opportunity. Maybe just picking up where the other guys just left off here. Can you elaborate a little bit on how you're seeing the opportunities emerge as it pertains to the shadow backlog? I know you gave some of these examples smaller and larger, but maybe regionally and how they pertain. I mean, obviously, we've seen examples recently in the last week here with a private backed pipeline FID in the Gulf Coast. Could you elaborate a little bit on the power opportunities, both in as it pertains to Texas, and also maybe as it pertains to the backlog opportunity in the Southwest, I mean, obviously, we saw what your peer announced in the last few months, but how do you think about the future on the gas side in the El Paso system.

Question: Julien Dumoulin Smith - Jefferies - Analyst : Got it. And if I can pick a little bit -- I know you just alluded to the Southeast opportunities on does that line up with what we're seeing right now in the generation resource planning? I mean, obviously, we've upticked it pretty meaningfully here of late. Is that presently reflected? Or is there a little bit of a mark-to-market to happen on your side? And then also on the Western Gateway, if you could just clarify what the ultimate economics are on your side or at least the total dollars are. Unidentified Company Representative So I'll take the first question, and I'll turn it over to Kim and Mike on the second one. So Southeast, look, in terms of what we're in that $10 billion that Kim was referring to, that is taking into account some of the IRPs that are out there, especially in the Southeast. I mean that's what we see as infrastructure that's needed. And so I think to answer the first question, that is a subset of that $10 billion. And then I'll turn it over to Kim and Mike for the second piece.

Question: Julien Dumoulin Smith - Jefferies - Analyst : Completely understood. Thank you, guys very much look forward to, working with you guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 8:30PM, KMI.N - Q3 2025 Kinder Morgan Inc Earnings Call

Question: Michael Blum - Wells Fargo Securities LLC - Analyst : Thanks, good afternoon, everyone. I Wanted to ask about Highland Express, the NGL conversion project. Just in terms of where do you stand on committed initial volumes? And where do you think that can go? And then I noticed in the press release, you talked about potentially some takeaway out of the Powder River as well. So I wonder if you can expand on that. Unidentified Company Representative Yes. So sticking to our previous discussions, it's on track. We're on track to be ready first quarter next year for our initial commitment. Obviously, you all know we're also at a very aggressive competition with the incumbent there, so I won't get too much into the details on what's next. That being said, we have some assets that we're effectively repurposing to be able to position ourselves to draw incremental barrels to the pipeline. And I will leave it at that until we actually have the next set of announcements to make, hopefully, very soon.

Question: Michael Blum - Wells Fargo Securities LLC - Analyst : Thanks.

Question: John Mackay - Goldman Sachs Group Inc - Analyst : Hey everyone, thanks for the time. I'm going to go to the shadow backlog, too, I guess, not to keep running through the same thing. But I guess I just want to ask one more way. When you're looking at the $10 billion, how much of this is look at the competitive environment, we'll see what we win, we have a lot to bring to the table versus really waiting for actually that demand to materialize the next LNG FID, some larger power built out across the Southeast, et cetera. Maybe just what are the kind of buckets between the two in terms of what you see in front of you?

Question: John Mackay - Goldman Sachs Group Inc - Analyst : That's fair. Maybe just follow-up second question. I appreciate the comments on the guide around the RNG side being softer. Can you talk about the rest of the business? I mean, gas was relatively strong. Any more kind of one-offs in there? Or is this a kind of healthier run rate?

Question: John Mackay - Goldman Sachs Group Inc - Analyst : That's clear. Thank you.

Question: Spiro Dounis - Citibank Cameroon SA - Analyst : Thanks operator. Good afternoon team. I wanted to start with the 2026 outlook. I know we're going to be getting a formal update from you guys in a few weeks. But maybe just at a high level, if you just talk about some of the variables you could see impacting the various segments? And maybe any reason 2026 growth wouldn't at least sort of match up the 2025 growth rate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 8:30PM, KMI.N - Q3 2025 Kinder Morgan Inc Earnings Call

Question: Spiro Dounis - Citibank Cameroon SA - Analyst : Yes. Fair enough. Second one, if you could believe it. I do have another follow-up on the opportunity set. And so just curious, how we should think about the time frame that either the $10 billion or the 10 Bcf a day captures I'm asking from two different perspective. To the extent these are all opportunities you're sort of chasing within the decade, is there an opportunity here to see investment per year CapEx go up above $3 billion. And then conversely, how should we think about your ability to maybe deliver more short-cycle cash flows. A lot of these projects have later dated great projects. But just curious if you could sort of fill the front end up more, too.

Question: Spiro Dounis - Citibank Cameroon SA - Analyst : Got it. Let's double, Kim. I'll leave it there. Thank you.

Question: Jason Gabelman - Cowen and Company LLC - Analyst : Yeah, hey, thanks for taking my questions. I wanted to ask about the shadow backlog as well. And you mentioned both kind of large-scale and smaller projects. And I was hoping to get a bit more color on the larger projects. If I look at the backlog that you have right now in projects and execution, it's kind of large projects that are all serving Texas and Southeast. Should we assume the large projects in the backlog are kind of similar markets they serve or is it kind of a bit different? I noted, for example, you mentioned Mexico a couple of times and wondering if that's one of the larger projects in the backlog.

Question: Jason Gabelman - Cowen and Company LLC - Analyst : Okay. Understood. And then my other question is just on M&A. Given there's starting to see once again a bit of a larger multiple dispersion between natural gas and liquids names? And given you do have a decent sized nonnatural gas business. I wonder if there's opportunities out there or hold in the portfolio that you'd be interested in filling especially if crude oil prices fall and some other companies become available? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 8:30PM, KMI.N - Q3 2025 Kinder Morgan Inc Earnings Call

Question: Jason Gabelman - Cowen and Company LLC - Analyst : Yes.

Question: Jason Gabelman - Cowen and Company LLC - Analyst : Okay, great. Thanks for the answers.

Question: David Winans - PGIM, Inc - Analyst : Hey, thank you for taking a by side question. I appreciate it. You guys got a great opportunity set in natural gas, but just kind of switching gears a little bit here to the CO2 business at least one operator is talking about potentially using CO2 suites in some of these type plays out in the Midland and Delaware basins and such. Is that something you guys have looked at? Does that represent a business opportunity for Kinder Morgan? Or do you need to see more proof of concept around something like that? Unidentified Company Representative Are you talking about participating in that Dave? Or are you talking about supplying the CO2?

Question: David Winans - PGIM, Inc - Analyst : Thank you very much.

Question: Jean Ann Salisbury - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Hi Kim. I just wanted to follow up on the comments that you've made about needing to build pipelines from kind of Tier 2 basins, not the Haynesville to the LNG that's coming online. One issue, I guess, that I had been thinking about is that it's a little bit unclear who would be willing to underwrite these contracts with the LNG builders kind of being linked to Henry Hub and the EMPs maybe not wanting to take long-term contracts. So I was just wondering if you could give any color on if you see that being kind of a constraint to these [being built] and just if you think it will be a mix of end users, E&Ps and marketers on those trends of pipelines?

Question: Jean Ann Salisbury - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Great, I'll leave it there. Thank you for taking my question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 8:30PM, KMI.N - Q3 2025 Kinder Morgan Inc Earnings Call